Supervalu shares jumped 12 percent Thursday, March 21, after the Eden Prairie-based grocery giant wrapped up the sale of five regional supermarket chains and secured investments to shore up its future.

The deal shrinks Supervalu to just half its earlier size. But it offers a hopeful future to one of Minnesota's largest corporations -- and the owner of Cub Foods -- which had been foundering amid a sea of debt, struggling stores and rising competition.

After sinking to $1.68 last fall, Supervalu shares hit an eight-month high of $4.68 on Thursday. That's still a long way from its peak, when Supervalu ranked as one of America's largest grocers, with $46 billion in annual revenue. But to Supervalu watchers, it was a leap forward.

Cantor Fitzgerald analyst Ajay Jain welcomed the "end of a long period of value destruction."

Supervalu said Thursday it sold five regional supermarket chains: Albertsons, Acme, Jewel-Osco, Shaw's and Star Market. The buyer was an investor-led consortium headed by Cerberus Capital Management, which also made good on a pledge to buy a large stake in the new, smaller Supervalu.

That consortium now owns 21.2 percent of Supervalu's shares, the company said Thursday, making it Supervalu's largest shareholder. Those investors paid $4 each for Supervalu shares.

The $3.3 billion sale included $100 million in cash and the buyers taking responsibility for $3.2 billion in debt.

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Shedding debt and raising cash allows Supervalu to refocus on assets closer to home, including Cub Foods in the Twin Cities and a large food-distribution business.

"The successful completion of this transaction marks a significant milestone for Supervalu and our shareholders, customers and employees," CEO Sam Duncan said in a statement. "As we move forward, Supervalu will continue as one of the largest wholesale grocery providers in America. ... We plan to continue growing our hard-discount Save-A-Lot format that includes over 1,300 stores nationwide, and we will operate five strong regional retail banners."

In 2006, Supervalu purchased the Albertsons grocery empire, stepping into the big leagues with a coast-to-coast presence. But it didn't end well. A long recession, too much debt, competition from discounters and the decline of the middle- American supermarket pummeled the company.

After years of asset sales, belt-tightening and layoffs, Supervalu executives last year took the drastic step of peddling the company. The Cerberus deal gives it breathing room, although outside analysts say the company still has many hurdles to overcome.

Robert Miller, president and CEO of Albertsons, on Thursday was named chairman of Supervalu's board. In a statement, Miller said he was "optimistic that together with Sam (Duncan) and his executive team we can reposition the company for future success."